According to thisismoney.co.uk, house prices have soared a massive 18% over the last two years, meaning that many renters feel trapped in a loop; rental costs mean they cannot afford to save for a deposit, but it would be cheaper to pay a mortgage on their own property than the rent that they are paying. Skipton records that the number of renters has increased to double that in 2000, meaning there are a total of 4.6 million households renting privately across England. 

Previously a common mortgage before 2008, Skipton are offering certain buyers the opportunity to purchase a property with a deposit of between 0% and 5%. Known as a "Track Record Mortgage", applicants must be first time buyers, aged 21 or over, who can prove they have not missed any debt or credit commitments in the previous 6 months. This includes mobile phone bills and credit cards. Applicants will only be eligible if they meet the household-to-household criteria, and they must be able to show that they have paid 12 consecutive months' of rent in the previous 18 months.  

Skipton advise that if customers meet the eligibility criteria, they check out the online track record calculator. Unlike Skipton's affordability calculator, the track record calculator looks at how much rent the applicant has paid monthly based on a 6 month average. Skipton then advise that applicants use the affordability calculator to work out how much they would be eligible to borrow usually.  

 

Applicants then take these two figures, and should use the lowest of the two as the maximum amount they can borrow. 

 

For example, if the track record calculator shows a maximum borrowing amount of £177,500, and the affordability calculator shows a maximum borrowing amount of £225,000, the total amount the applicant could borrow is £177,500. 

Once you know how much you could borrow, you should apply for a decision in principle. They advise that you can present this to estate agents as proof of your borrowing capacity when making an offer to buy a property.  

 

Once your offer has been accepted, no doubt you'll want to get into your new property as soon as possible, so it's time to speak with our conveyancing solicitors and instruct our team to act on your behalf with your purchase.  

Skipton are not the only lender to offer mortgages, and there may even be some 100% mortgages on offer with other lenders. Before agreeing to any mortgage, you should contact a mortgage broker and seek advice on the options available to you. This will help to ensure that you are getting the best offer to suit your circumstances. You can find useful mortgage comparison websites such thisismoney.co.uk, moneysupermarket.com, comparethemarket.com, gocompare.com, uswitch.com and moneysavingexpert.com. These are just some common websites on google - other comparison websites may be available. 

No matter what type of property you’re looking to buy, where about you’re looking to move, and whether this is your first property purchase or an additional property that you are buying, MG Legal’s conveyancing solicitors are here to help. 

 

To speak to our solicitors about how we can help with your property purchase or property sale, simply get in touch with us online, give us a call, or email us at enquiries@mglegal.co.uk to hear back from a solicitor the same working day, and usually within minutes of your enquiry. 

 

Or, if you live in the local area, arrange an appointment in our offices in Garstang, Longridge, or Lancaster, to speak to a conveyancing solicitor in person. We look forward to assisting with your property purchase or sale.